Thank Len for introduction and commend him—as well as the other DOT employees who are involved with planning and implementing conference.

When I was Assistant Secretary for Transportation for Policy with USDOT, I worked closely with CEC’s parent organization--the American Council of Engineering Companies.

• Worked on a national level of a variety of issues including design build, transit and environmental streamlining.

Now that I’m here in North Carolina, I’m continuing to work on environmental streamlining on the state level.

• NCDOT’s environmental streamlining efforts have been selected as a national pilot project.
  
• This new pilot strengthens the environmental planning process for highway construction through a variety of steps, including improved communication with environmental agencies, expanded technology and procedures that support the early identification and resolution of impacts upon both the natural and human environment.
  
• The pilot is the result of a partnership between NCDOT and its environmental agency partners—including the N.C. Department of Environment & Natural Resources (DENR), the U.S. Fish & Wildlife Service and the U.S. Army Corps of Engineers.
  
• This initiative is part of our goal to identify efficiencies within the department to continue our commitment to protecting the environment and our state’s natural resources.

This morning, Secretary Tippett outlined additional goals as part of our agenda which is helping improve transportation in our state.

In order to meet these goals and priorities we must have adequate funding.

• Worked closely with the General Assembly this year to secure funding to help meet the state’s transportation needs.

One of the first things we did, at the recommendation of the Transportation Finance Committee, was examine our operations and determine ways the Department could be more efficient.

• We’re continuing to reduce our administrative costs through the use of information technology;
  
• We have streamlined the construction bidding process, helping to reduce construction time;
  
• And, as I mentioned, we’re also streamlining our environmental processes and working with resource agencies to establish mutual goals and accountability for transportation projects, service delivery and environmental quality.

The budget passed by the General Assembly includes provisions that will take us a step closer to meeting our goals.

• Secretary Tippett explained this morning the provision which allows the department to use cash balances in the Highway Trust Fund.
  
• This provision will allow us to use these funds for primary pavement preservation—as well as for projects which will help reduce congestion in our urban areas.

We are pleased that the budget also includes an additional:

• $18.4 million for contract highway resurfacing;
• $26 million for highway maintenance—$19 million recurring and $7 million nonrecurring and;
• $13.7 million for public transportation

In addition to these commitments, the General Assembly has authorized the department to license one private toll facility.

The General Assembly also asked the department to conduct a public toll feasibility study, which we completed in February.

• It was determined that toll funding is a highly feasible alternative to traditional funding in some cases and that this process can help us meet critical transportation needs much more quickly.

I also want to talk with you about the importance of federal funding -- and what it has brought to our state.

• I'm speaking of the federal-aid program called the Transportation Equity Act of the 21st Century -- or TEA-21.

TEA-21 is the federal funding program that sets the framework for how transportation funding is allocated during a six-year period.

• Through my work at USDOT, I know firsthand how important federal funding is to a project.
  
• Can mean planning, right of way or construction are accelerated -- and can mean that a project can only be built because of federal funding.

Since enacted in 1998, TEA-21 has given North Carolina nearly $3 billion in federal funds for highway, public transportation, rail, ferry, enhancement, safety and bicycle and pedestrian projects across the state.

• Allowed us to partner with federal agencies to improve our deteriorating highways and bridges, increase capacity and link the mountains and the coast;
• Supported a renaissance in public transportation by increasing rail ridership and modernized bus fleets;
• Saved lives with safety programs that have improved the use of seat belts, child safety seats and air bags –reduced drunk driving and built safer facilities; and
• Ushered in a new commitment to taxpayers -- gave them a guarantee that every dollar they pay at the pump in federal fuel taxes will be spent to improve the transportation system we all depend on.

For North Carolina that means more than $2.9 billion in federal funds since 1998 for highway projects—as well as highway planning and research projects.

Safety
Has provided more than $27 million in funding for traffic safety and equipment programs including:

• Operations Safeways in Union County
  
• Hispanic Highway Safety Education Campaign
  
• Bicycle and Pedestrian Safety Initiatives
  
• Community Traffic Injury Prevention Program in Lenoir County

Public Transportation

• Provided more than $220 million for public transportation
  
• $32 million to support community transportation programs’ capital, administrative, planning and operating needs in rural areas;
  
• $31 million to support bus and bus facility needs of urban transit systems;
  
• $92 million to support the operating needs of urban transit systems;
  
• $52 million to assist with the planning, environmental and preliminary engineering costs of the new, fixed guideway projects in the Triangle and Charlotte regions.

Rail

• From 1998 (fiscal year) until now, the Rail Division has spent nearly $40 million in TEA-21 funds as follows
  
• $28 million - Normal crossing projects such as adding flashing lights and gates to warn people of approaching trains.
  
• $2.6 million for sealed corridor crossing - crossing improvements in Raleigh-Charlotte corridor. Includes technology such as four-quadrant gates, median separators, long gate arms.
  
• $9.1 million for rail station rehabilitations as part of the enhancement program.

Bicycles

• More than $15 million for independent bicycle and pedestrian construction projects using TEA-21 enhancement funds.
  
• Additional enhancement funds have been allocated for non-construction bicycle and pedestrian safety education, training workshops, Walkable Communities conferences and engineering feasibility studies.
  
• Examples of larger construction projects:

• $3 million for bike lanes along N.C. 12 in Dare and Currituck counties
  
• $3.9 million for the American Tobacco Trail in Durham—includes $2.8 million to purchase right-of-way and $1.1 million in construction cost participation.

• More than $1 million in enhancement funds to improve the cultural, aesthetic and environmental aspects of the state's transportation system -- preserves treasures that can be enjoyed for generations. These include:
  
• Preserving scenic vistas along the Blue Ridge Parkway—including
  Grandmother Mountain, Bauman Tract, Altapass Orchard and Stokes Tract at Bullhead Mountain.
  
• Restoring Spencer Shops Transportation Museum in Spencer, N.C.
  
• Rehabilitating historic rail stations in Wilson and Salisbury.
  
• More than 3,000 acres of wildflower beds planted on roadsides across the state.

TEA-21 will expire in September 2003

• Plans are underway to set guidelines for new funding
• Will work with Governor, Congressional delegation, state legislators and citizens on new federal program to help keep North Carolina moving forward.
  
• Through these efforts we have an opportunity to help shape the transportation future of not just North Carolina, but our nation as well.
  
• Our top three objectives are:

• Increase funding for new public transportation projects like the regional rail systems planned by the Triangle Transit Authority and the Charlotte Area Transit Commission.
  
• Achieve a better return on North Carolina’s contributions to federal transportation funding.
  
• Above all else, we’d like to gain more flexibility in how federal transportation funds can be spent. Instead of tying funding to so many specific programs, we’d like to be able to apply these funds to address pressing needs, such as maintenance.

Earlier this month, USDOT presented Congress with a report that outlines the many benefits of TEA-21 -- all of which I've told you about today.

• They're laying the foundation for a new equity act for the states -- and over the next two years, we'll work hard for transportation in North Carolina -- making sure you get the best return on your federal dollars.
  
• We need a lasting commitment that will inspire a renewed dedication to keeping our transportation system the best in the country.

As you can see, we are working hard to fund, build and maintain a transportation system which meets the needs of all North Carolinians.

• We will continue to work with the legislature to secure additional funds to meet our goals.
  
• We’ll also continue to identify efficiencies that will help streamline our operations and help us find new and creative ways to conduct our business.
  
• We thank the CEC/NC for partnering with us.
  
• We look forward to continuing our odyssey together.

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